Tempers rise in the big fuel FLARE-UP!
Hard-hitting report by energy regulator finds fewer customers are complaining – but now they are angrier
POOR handling of customer complaints by energy suppliers has been exposed by watchdog Ofgem in a new report. Long delays to rectify wrongs and lack of updates about the progress of grievances were top failures. The Mail on Sunday analyses the regulator’s main findings – and looks at the best way to fix your complaint.
DISCONTENT RISES
EVERY two years the watchdog investigates customers’ satisfaction with suppliers’ complaints-handling. This year’s verdict shows the volume of complaints, mostly about billing problems, meter errors and switching issues, has halved since 2014 – but those who are complaining say the experience is worse.
The rate of customers ‘very dissatisfied’ with how their complaints were dealt with increased from 43 to 67 per cent for Npower customers and from 50 to 64 per cent among ScottishPower customers.
First Utility was worst performing among medium-sized suppliers at 63 per cent. This is the first year that smaller companies have been named separately.
Four of the Big Six energy companies – SSE, British Gas, Eon and EDF Energy – maintained ‘dissatisfaction’ levels rates similar to those reported two years ago.
Evidence also suggests customers are not being signposted to an independent mediator that can help with or settle disputes with their supplier – a requirement by Ofgem.
SLOPPY SERVICE
POOR service has allowed dissatisfaction levels to snowball, with many customers finding their complaints are left to rot for long periods of time – years in extreme cases.
Npower and ScottishPower take longest to resolve problems, with over half of npower customers likely to be left waiting for more than two months, while 46 per cent of ScottishPower customers face the same delays. This is compared to a 30 per cent average across all suppliers.
Lewis Shand Smith, of Ombudsman Services, which has an energy wing to referee on fallouts between suppliers and their customers, says: ‘Many customers with gripes appear to have fallen through the cracks. We would encourage them to come to us if their complaint has been ongoing for more than eight weeks, or if the company has said it won’t act. Our aim is to put them back into the position they would have been in before the issue arose.’
THE FALLOUT
IT CAN be tempting to shove an unresolved issue aside to sort out another day.
But a problem left alone can lead to a swelling debt if bills go unpaid. This could even lead to a blemished credit rating. Suppliers can register non-payment with agencies that keep a history of people’s bill paying activity. A black mark on an individual’s credit file can impact their chances of getting financial deals, such as mortgages, credit cards or bank accounts.
The longer a problem is left, the harder it becomes to collect evidence and put together a straightforward case for resolution.
Shand Smith says: ‘Where there is a long history of billing issues we would expect suppliers to provide a clear breakdown of an account. Customers can help prevent issues by providing regular readings to their
suppliers, making payments and studying bills for discrepancies.
He adds: ‘Even when it is a complicated issue dating back some time, ultimately we can get it resolved for customers. Once we have made a decision it is binding on the company, which has to abide by the remedy.’
SWITCH DEALS NOW
ACCURACY is key to getting the best deal. So mind any gap between the direct debit you pay each month and the actual amount of energy you use and are charged for. While some customers overpay and are in surplus, others underpay and are building up debt.
An end-of-summer bill is unlikely to be an accurate reflection of consumption over one year, since most households use less energy when the weather is warmer and daylight lasts longer.
Ask your supplier for an annual statement of usage and the rates of your tariff if you haven’t already received one. Then compare deals using a switching website such as TheEnergyShop or Gocompare.
Ben Wilson, energy spokesman for Gocompare, warns of fixed dual fuel energy deals coming to an end shortly, meaning potentially higher bills for customers rolling on to a standard deal.
He says: ‘September marks the start of thermostat switch-on season when it’s even more important for energy customers to avoid being rolled over on to expensive variable tariffs when their fixed deal comes to an end.’
Comparison websites have been criticised in recent years for ‘hiding’ the cheapest tariffs on their websites in favour of promoting suppliers that pay a commission. Ofgem banned this practice and forced comparison websites to show all deals.
But the Competition and Markets Authority proposed that Ofgem should overturn this rule, which it has agreed to do.
CLUB TOGETHER
ANOTHER way to secure a better deal is to sign up to a collective energy switching service like The Big Deal or MoneySavingExpert’s Cheap Energy Club.
These services use the power of large customer numbers to negotiate a lower tariff for everyone. But there is no obligation to take the deal once it is offered.